Analyst Insights Take Form on Ambarella, Inc. (NASDAQ:AMBA) Post-Election

by Engelwood Staff — November 23, 2016

Sell-side Street analysts covering Ambarella, Inc. (NASDAQ:AMBA) presently have an average rating of 1.72 on company shares. This consensus rating is using 7 analysts polled by Zacks Research. On a numerical scale from 1 to 5, a rating of 1 or 2 would indicate a Buy recommendation. On the same scale, a 4 or 5 rating would point to a Sell recommendation. A rating of 3 would signify a Hold recommendation. In addition to the average broker rating, let’s see where the analysts see the stock moving in the near term. In the sell-side reports given to institutions, the research firms often offer a projected target price on the stock. The time frame and criteria can vary depending on the firm, so to get a general feel for where they see the stock heading, we view the consensus number. Based on the 7 analysts providing stock targets, the top is currently at $86 and the bottom is $50. The mean, or consensus number is $75.714.

Looking at the earnings health of the stock, analysts are expecting that the company will report earnings of $0.68 per share for the current quarterly period on or around 2016-12-01. Last quarter the firm posted earnings of $0.25 for the quarter. This was $0.09 away from the analyst consensus, yielding a surprise factor of 56.25%. Large surprise factors can lead to significant stock price movement in the days and months following an earnings report. The Street will be watching to see if the firm will meet or beat this quarter.